Analysts at Nordea Markets suggest that the Bank of Japan has cut its purchase pace in the 10-25yr segment last week again, as they had been pre-warning about for the last few months.
Key Quotes
“Dovish central banks elsewhere lead to a relatively more hawkish BoJ due to the nature of their yield-curve-control. If there is no upside pressure on bond yields globally, then BoJ will have to buy fewer bonds to keep the yield-curve in control.”
“We ultimately see this is a JPY positive risk, why we stay long JPY versus USD via our debt ceiling basket.”
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